Basic Appraisal Procedures Exam with 100% Correct Answers

Basic Appraisal Procedures Exam with 100% Correct Answers When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the mean of the GRMs? - Answer-96.3 "The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing" is the definition of -Answer-mass appraisal What is the most common type of framing currently being used in new homes? - Answer-platform frame Fannie Mae requires a single-unit residential appraisal report to include photographs of -Answer-the subject property and the comparable sales When measuring a condominium you should calculate ____ using _______ measurements. -Answer-GLA, interior A parcel is valued at $450,000 as a single unit. Zoning allows it to be subdivided into 8 lots and it is estimated that each lot could sell for $70,000. Site development costs (sewer, grading, road, etc.) would cost $65,000. What is the highest and best use? - Answer-subdivide it An appraiser encounters an underground storage tank and there are no signs of leakage or failure. An appraisal could be performed under the presumption that the tank is not leaking and the property is not contaminated. This would be an example of a(n) - Answer-extraordinary assumption A deed could provide all of the following information about a property EXCEPT owner of record easements deed restrictions zoning -Answer-zoning You examine a construction contract to build a 2,448 square foot house and the total cost is $197,450. What was the cost per square foot? -Answer-$80.66 Which would NOT be an appropriate legal description of a subject property? postal address metes and bounds description rectangular survey description lot and block description -Answer-postal address You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the median of the GRMs? - Answer-109.3 Which of the following would NOT be a common adjustment when appraising land? size quality shape topography -Answer-quality Possible Adjustments. The other three are common adjustments, but quality adjustments would be made to improvements - not land. The most common brownfield contaminant is -Answer-petroleum "The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted" is the definition of -Answer-net operating income Which cost estimating method is the most detailed and time-consuming to develop? comparative-unit quantity survey unit-in-place index -Answer-quantity survey The most common unit of comparison for land in rural areas is price per _______. - Answer-acre A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning, rent for $1,100 per month. The appropriate gross rent multiplier is 75. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? -Answer-$3,750 Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 75 = $3,750. A factory-built house constructed in compliance with the HUD code is _________ home. -Answer-manufactured A house is rented for $1,050 per month, but lacks air conditioning. Comparable houses with air conditioning rent for $1,100 per month. The appropriate gross rent multiplier is 85. By the capitalized value method, how much is the depreciation attributable to the lack of air conditioning? -Answer-$4,250 Capitalization of Income Loss. $1,100 - $1,050 = $50 rent loss. $50 X 85 = $4,250. You calculate the following gross rent multipliers for comparable properties: 121.2, 105.3, 111.2, 150.1, 108.3, 105.3, 109.8, 108.8. What is the mode of the GRMs? - Answer-105.3 Which would NOT be a form of concurrent ownership? tenancy in severalty tenancy in common joint tenancy tenancy by the entirety -Answer-tenancy in severalty In the sales comparison approach, we always adjust the _________; we never adjust the ____________. -Answer-comparable sales, subject property The _______________ method has good application in valuing land in rural areas and in older, urban areas. -Answer-extraction Extraction Method. That's where the extraction method is more common - due to a scarcity of vacant land sales. The SCOPE OF WORK RULE says that in each real property appraisal assignment, the appraiser must _______ the problem to be solved, and determine and perform the scope of work necessary to develop ________ assignment results. -Answer-identify, credible When developing an appraisal, you calculate the following GRMs for comparable properties: 94.3, 90.1, 95.6, 109.2, 84.5, 100.7, 99.9. What is the median of the GRMs? -Answer-95.6 Each written appraisal report must contain the date -Answer-of the report and the effective date of the appraisal An old gas station on a good corner location in a desirable older